Pakistan’s central bank has taken a historic step. Banks are now allowed to open accounts for licensed virtual asset service providers, effectively overriding a ban that had been in place since 2018.
The move follows the enactment of the Virtual Assets Act, 2026. It marks the country’s first formal effort to bring crypto-related businesses into the regulated banking system.
“This is a foundational step in bringing virtual assets into the formal financial system of Pakistan,” said Bilal bin Saqib, chairman of the newly established Pakistan Virtual Assets Regulatory Authority (PVARA).
How the new rules work
The State Bank of Pakistan laid out clear conditions for banks that want to onboard crypto firms. Before opening any account, banks must verify that the firm holds a valid licence issued by PVARA.
Client accounts must be segregated and non-interest-bearing, denominated in Pakistani rupees. Banks remain fully responsible for due diligence, risk profiling, and reporting suspicious transactions.
There’s also a firm boundary: banks cannot invest in or hold virtual assets using either their own funds or customer deposits. The framework is designed to provide access without exposing the banking system to direct crypto risk.
Anti-money-laundering and compliance rules apply throughout. The regulations make it clear that integration doesn’t mean deregulation.
Pakistan is already courting global crypto players
The banking access announcement doesn’t exist in a vacuum. Pakistan has been actively positioning itself as a welcoming market for digital asset firms.
In December, the government signed a memorandum of understanding with Binance to explore tokenizing up to $2 billion in assets. Both Binance and HTX have received initial clearances to begin the licensing process.
In January, Pakistan struck a deal with an affiliate of World Liberty Financial to explore stablecoin-based cross-border payments. That partnership signals interest not just in trading, but in using blockchain infrastructure for practical financial applications.
Taken together, these moves suggest Pakistan is pursuing a deliberate strategy — integrating digital assets into the formal economy while maintaining strict regulatory guardrails.